KUALA LUMPUR: Axiata Group Bhd is confident of a stronger fourth quarter after its net profit eased 11.75 per cent to RM631.03 million in the third quarter ended September 30 2014, from RM715.04 million recorded a year ago.
The RM631.03 million net profit was a solid 41 per cent increase over the preceding quarter.
This was boosted by the disposal of its 24 per cent stake in Samart I-Mobile (Thailand), which netted Axiata a RM116.7 million gain.
Group revenue for the third quarter slipped almost two per cent to RM4.65 billion from RM4.74 billion in the same period.
Axiata Group president and group chief executive officer Datuk Seri Jamaludin Ibrahim attributed the results mainly to the impact of systems-related issues in Celcom Axiata Bhd and forex losses in its Indonesian telco, PT XL Axiata Tbk, although they were mostly unrealised.
“Until September 30, the Indonesian rupiah has depreciated by 11.4 per cent against the US dollar since the beginning of the year.
“Gross revenue of Indonesia decreased by 4.5 per cent mainly due to translation impact of a weaker rupiah against the ringgit,” he said in a statement yesterday.
“Operating costs of the group increased by 4.3 per cent to RM2.95 billion in the quarter from RM2.82 billion last year, mainly due to higher operating costs in Malaysia and impact of the Axis consolidation in Indonesia,” he added.
Celcom embarked on a massive two-year information technology transformation exercise in 2012, a major undertaking spanning all touch points from dealers and customer care to retail outlets.
Jamaludin said the transformation, addressed in a phased approach, is now at the tail end.
He said Axiata is well-positioned to finish the year on a stronger note as it regained momentum at Celcom and XL, which is now well placed after the completion of the Axis integration.
“I am confident of a turnaround in the last quarter as we gain back the confidence of our customers and dealers with our enhanced ability to expedite the launch of new products while providing superior customer service.”
For the nine months, Axiata’s earnings fell 11.1 per cent to RM1.75 billion from RM1.97 billion in the previous corresponding period.
Its revenue was slightly higher at RM13.89 billion from RM13.85 billion.